Two former Queens Park men combined to give Stenhousemuir the lead after 18 minutes. Frankie Carroll poked the ball back from the right flank, finding the unmarked David McInally who side-footed the ball home at the back post.
The home side had an excellent chance to level midway through the first half as Shaun Molloy broke clear through on goal. But visiting keeper Williie McCulloch pulled off a fine stop to deny the full-back.
But the home side did get the equaliser on the half hour with an early contender for goal of the season. Steve Reilly picked out the run of Stuart Kettlewell with a raking 50-yard ball from defence, and Kettlewell hit the ball first time, lifting it over McCulloch into the back of the net.
Queens Park keeper David Crawford had to be alert to stop Stenhousemuir taking the lead at the start of the second half.
Substitute Tommy Sinclair hit a snap shot from the edge of the area which the keeper did well to touch behind.
Crawford pulled off a string of fine saves to keep the scores level, but substitute Paul McGrillen eventually netted the winner for the third division favourites with six minutes remaining.
Colin Cramb back-heeled the ball into the path of McGrillen, who fired a low angled drive into the back of the net from 10 yards.